FOR IMMEDIATE RELEASE JANUARY 25, 2000

CONTACT:

Richard E. Leone
Manager
Investor Relations
330.544.7622


RTI INTERNATIONAL ANNOUNCES 1999 RESULTS

Niles, Ohio — RTI International Metals, Inc. (NYSE: RTI) released results today for the fourth quarter and year of 1999.

Net income for the year was $2.2 million, or $0.11 per share, on sales of $243.3 million. Comparable results for 1998 were a net income of $68.1 million, $3.31 per share, on sales of $337.5 million. Adjustments to deferred tax assets added $16.1 million or $0.78 per share to 1998 's record results.

Net income for the fourth quarter of 1999 was $0.8 million, or $0.04 per share on sales of $65.3 million. Comparable numbers from the fourth quarter of 1998 were $6.9 million, $0.34 and $71 million, respectively.

RMI Titanium Company ("RMI"), a wholly owned subsidiary of RTI, had higher than expected fourth quarter 1999 mill product shipments totaling 2.5 million pounds at an average price of $15.78 per pound.

Timothy G. Rupert, President and CEO, noted, "RTI's earnings in 1999 were significantly impacted by a sudden downturn in our commercial aerospace markets owing to announced lower aircraft build rates and excess titanium inventories. A strike at RMI that continued through the first four months of the year also reduced mill product shipments. To a lesser extent, weak oil and gas prices through mid-year hurt sales to energy markets. Despite these conditions, we were able to remain profitable, integrate the acquisitions made in 1998, and fund $26 million in capital spending that will further diversify our sources of revenue and reduce cost. Our actions during the last up cycle in titanium made RTI a stronger Company. I think our performance this year compared to prior downturns in our industry demonstrates that strengthening."

Regarding 2000, Rupert added, "We expect demand from commercial aerospace markets to remain weak this year. Hopefully, we will start to see reductions in the inventories of aerospace suppliers later this year. Oil and gas prices have recovered which should bring about increased exploration activity in the second half. Barring the unforeseen, we expect our results to improve in 2000."

This news release contains forward-looking statements that involve risks and uncertainties. These include but are not limited to the cyclical nature of the commercial aerospace industry as well as the impact of industry-wide inventory imbalances in aerospace materials. These risks also include the cyclical natures of the chemical processing and energy industries, uncertain defense spending, potential difficulties associated with new market development, and the competitive market for specialty metals. Other risks and uncertainties have previously been included in the Company's filings with the Securities and Exchange Commission, copies of which are available from the SEC or from RTI Investor Relations.

RTI International Metals, Inc., headquartered in Niles, Ohio, through its various subsidiaries, manufactures and distributes titanium and specialty metal mill products, and extruded shapes, as well as engineered systems for energy-related markets and environmental engineering services. The Company's products are used for aerospace, industrial and consumer applications.

NOTE: RTI International Metals, Inc. has scheduled a conference call for Wednesday, January 26, 2000, at 11:30 a.m., Eastern Standard Time, to discuss this press release. Timothy G. Rupert, President and CEO, John H. Odle, Executive Vice President, and Lawrence W. Jacobs, Vice President and CFO, will represent RTI. To participate in the call, please dial (800) 450-0785 a few minutes prior to the start time and specify the RTI International Metals, Inc. conference call. Replay of the call will be available until midnight, Eastern Standard Time, on Wednesday, February 2, 2000, by dialing (800) 475-6701, Access Code 498470.

 

RTI INTERNATIONAL METALS, INC
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars in thousands)

 

 

QUARTER ENDED DECEMBER 31,

 

YEAR ENDED DECEMBER 31,

 

 

 

 

1999

 

1998

 

1999

 

1998

 

 

 

 

 

 

 

 

 

Sales

 

$ 65,290

 

$ 70,868

 

$ 243,309

 

$ 337,476

Cost of sales

 

56,294

 

54,046

 

209,703

 

245,710

    __________   __________   __________   __________

Gross profit

 

8,996

 

16,822

 

33,606

 

91,766

                 

Selling, general and administrative expenses 

 

 

 

 

 

 

 

 

 

6,714

 

7,938

 

24,794

 

19,884

                 

Research, technical and product development expenses 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

898

 

966

 

4,043

 

3,886

    __________   __________   __________   __________

Operating income

 

1,384

 

7,918

 

4,769

 

67,996

 

 

 

 

 

 

 

 

 

Other income - net

 

507

 

542

 

1,319

 

2,773

Interest expense

 

(697)

 

(611)

 

(2,561)

 

(668)

    __________   __________   __________   __________

Income before income taxes 

 

 

 

 

 

 

 

 

 

1,194

 

7,849

 

3,527

 

70,101

Provision (credit) for income taxes 

 

 

 

 

 

 

 

 

 

434

 

872

 

1,304

 

1,958

    __________   __________   __________   __________

Net income

 

$ 760

 

$ 6,977

 

$ 2,223

 

$ 68,143

 

 

 

 

 

 

 

 

 

Net income per common share 

 

 

 

 

 

 

 

 

 

 

 

Basic

$ 0.04

 

$ 0.34

 

$ 0.11

 

$ 3.31

 

 

 

 

 

 

 

 

 

 

Diluted

$ 0.04

 

$ 0.33

 

$ 0.11

 

$ 3.29

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

20,818

 

20,719

 

20,771

 

20,561

 

 

 

 

 

 

 

 

 

 

Diluted

20,873

 

20,813

 

20,865

 

20,685

 

 

 


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